Debt refinancing of 171MW Finnish onshore wind portfolio

Augusta & Co is delighted to have acted as exclusive financial advisor to Renewable Power Capital (RPC) in arranging the refinancing of its wholly owned 171MW Finnish onshore wind portfolio. The portfolio comprises three assets that reached commercial operations in Q1-23: Merkkikallio, Puutikankangas, and Rustari.

A 22-year term loan facility of c.€200m has been arranged with Kommunalkredit AG, an Austrian bank specialising in infrastructure and energy financing, and AP Pension, one of the largest commercial pension funds in Denmark, with the benefit of an Export Credit Agency (ECA) cover provided by Euler Hermes. The transaction includes a novel structure that combines a low cost ECA-covered tranche with a much longer-dated commercial tranche offered by institutional lenders.

Sylvain Delion, Head of Structured Finance at Renewable Power Capital, said: “Augusta & Co led an extensive and thorough debt sourcing process which culminated in a debt structure which provided best value while meeting our specific requirements. Their deep knowledge and experience of renewable financing helped us navigate the recent volatility both in the financial and power markets. This financing puts the project on a sound long-term financing footing, and we are very pleased with the results.”

Romane Guitard, Managing Director at Augusta & Co, commented: “We are delighted to have supported RPC with the refinancing of their first Nordic onshore wind portfolio. We have been impressed by the sophistication of the RPC team, their innovative approach, and their excellent reputation in the market. After a significant market testing exercise, we brought together a novel combination of three distinct pools of capital, including ECA, commercial banks, and institutional debt funds to deliver on RPC’s return and flexibility requirements in a challenging financing environment. This transaction again demonstrates our approach to develop and execute bespoke structuring solutions in ways that best serve our clients.”

Romane Guitard